MELITA CONSULTING LIMITED

Executive Summary

Melita Consulting Limited is a micro IT consultancy showing declining revenues, negative equity, and liquidity challenges, reflected in consistent operating losses and net current liabilities. The company’s financial profile indicates weak ability to meet credit obligations without additional support. Credit extension is not recommended until financial performance and balance sheet strength improve substantially.

MELITA CONSULTING LIMITED - Analysis Report

Company Number: 12382153

Analysis Date: 2025-07-20 17:20 UTC

1. Credit Opinion: DECLINE
   Melita Consulting Limited demonstrates a weak financial position with consistent net liabilities and operating losses in its latest fiscal year. The company’s turnover has declined year-on-year from £38,412 in 2023 to £26,565 in 2024, while it posted a loss of £6,476 in 2024 compared to a small profit in 2023. The negative net assets position of £7,429 and negative working capital indicate poor financial resilience and limited ability to meet current obligations without external support. Given these factors, the company currently lacks the financial strength to reliably service further credit facilities.

2. Financial Strength:
   The balance sheet shows fixed assets of approximately £7,973 but current liabilities significantly exceed current assets, resulting in net current liabilities of £15,402 at the 2024 year-end. The company’s shareholders’ funds are negative (-£7,429), indicating an erosion of equity. This ongoing net liability position signals undercapitalisation and potential solvency concerns. The company is micro-sized with minimal share capital (£2), which offers little buffer against trading losses.

3. Cash Flow Assessment:
   Current assets have fallen to zero in 2024 from £6,660 in 2023, suggesting cash or receivables have been depleted. High current liabilities nearing £15k remain outstanding, indicating liquidity strain. The operating loss and negative working capital imply the company is likely reliant on external financing or director loans to fund operations. There is no indication of strong cash flow generation capability in the latest accounts.

4. Monitoring Points:

• Turnover trends and whether revenue stabilizes or grows
• Improvement in working capital and net asset position
• Profitability turnaround or reduction in losses
• Timely servicing of current liabilities and avoidance of overdue payments
• Changes in director support or capital injections